For-Sale Homes Are Becoming Less Affordable In Most Markets

June 9, 2017

The median list price for a home in the U.S. during the first quarter was $246,900, which was nearly 50 grand more than the median home value of $197,100.

According to Zillow, housing affordability has declined in more than half of the country’s largest metro areas, as buyers have to set aside more of their income to purchase the average house.

The site listed Los Angeles as an example: The median home for sale is $650,000, which would take up 47 percent of the median income for that area. In the 1980s and 1990s, the typical homes required 35 percent of the median income.

Other metros with large affordability differences from decades past include Miami, Boston, Minneapolis, and Phoenix.

That’s not to say these are the priciest or even the least affordable markets in the country. Phoenix, for example, has historically been one of the most affordable places to buy a home – and it remains affordable. It’s just not as affordable as it used to be, particularly when you consider the list prices on homes currently for sale in Phoenix.

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